Wall Street explores blockchain, stablecoins to enhance cross-border money movement.
Citi aims to introduce its cryptocurrency custody service in 2026 as it strengthens its digital asset strategy. The bank has been developing this project for nearly three years and is now preparing for a market-ready solution.
Citi plans to offer custody for native cryptocurrencies by building a system that can meet institutional client demands. The company is working on both in-house technology and third-party solutions to cater to various digital asset needs.
The initiative follows a regulatory shift under President Trump’s administration, which helped banks enter digital asset services. New legislation like the GENIUS Act has set guidelines for stablecoins, prompting increased bank activity in the crypto sector.
Citi wants to provide a secure alternative for holding digital assets, addressing concerns around cyber risks and asset theft. Since banks are heavily regulated, they aim to offer more trust compared to private crypto custodians and exchanges.
JPMorgan, Bank of America, and Citi are exploring blockchain-based solutions, including tokenised deposits and stablecoins. JPMorgan is developing a deposit token using Ethereum, while Citi has introduced its own product called Citi Token Services.
These solutions allow real-time, cross-border money movement, even outside traditional banking hours, using blockchain networks. Banks see these technologies as vital for improving speed and cost-efficiency in global payments and asset transfers.
Citi is also exploring stablecoins for clients operating in regions with limited banking infrastructure and payment systems. The bank believes digital currencies could enhance commercial activity in underserved areas by offering faster transaction options.
The stablecoin project remains in early stages, though Citi has already invested in related infrastructure firms like BVNK. This move shows growing confidence in the long-term utility of blockchain technology across different financial services.
Although some banks remain cautious, regulatory clarity has reduced uncertainty and encouraged broader participation. Citi’s push into crypto custody reflects a larger industry trend toward integrating digital assets into traditional finance.
